Why Didn’t Mary Kay Inc. Warn Liquidators Before Suing?

Why is it that instead of issuing a “cease and desist” order or a similar warning to the people selling on eBay, that Mary Kay Inc. just went ahead and filed lawsuits against these sellers?

Why didn’t they give these people a chance to stop their selling if they wanted to?

Why didn’t Mary Kay Inc. use the VERO program set up by eBay to address the alleged violations of their trademark and copyright? If sellers were violating these guidelines, set up to protect companies, then Mary Kay Inc. can simply file notice with eBay and the offending listings are removed. Apparently what Mary Kay Inc. is alleging is beyond VERO. If sellers aren’t using copyrighted or trademarked material or images in their listings and not trying to sell counterfeit products, then there isn’t much to dispute with eBay.

But instead of giving these sellers a warning, Mary Kay Inc. brought down the hammer.

If Mary Kay Inc. discovers that their active consultants and directors are selling products to those who then sell it on eBay, then what? Do they terminate those consultants and directors? Do those people then become examples, used to scare future recruits into behaving?

And what responsibility do those buying excess inventory for resell have to check out the person selling it to them? If there were an underground counterfeit TimeWise factory, maybe that would be reasonable. But as it is, all they know is that it is someone who was probably at one time in Mary Kay. Why should those sellers be required to find out if that person is active? Mary Kay Inc. can claim that by purchasing inventory from their active consultants that resellers are interfering with their business. But actually…they may be helping MK’s business: after all, with more room on their shelves, these consultants can now buy more merchandise directly from the company and keep the inventory loading machine rolling.

It will be interesting to see how this all plays out, no question.

Comments

LJ, you are asking some very interesting questions! What does MKC REALLY want?
There is no way a reseller can verify that a consultant is no longer with MKC, and calling and asking MKC would probably result in an answer along the lines of : “I’m sorry due to privacy regulations we cannot divulge any information about who is or isn’t an IBC.”

I think that MKC is a sinking ship and they are trying to make the IBC’s, SD’s and NSD’s think they are working to shut down those who are selling at below retail and below wholesale.

My guess is that they have taken a pretty heavy hit in sales and in those leaving the company and returning product. They are trying to stop the bleeding, IMO.

For sure, you would think if we were really allowed to simply sell MK however we wanted that it would be BETTER for them right? I rarely sell MK for any more than my cost from them just because I want to use some of their products but I want the wholesale price and teaming up with other women helps me do that. I definitely would be moving a lot more inventory through (and buying more from MK) if I could do whatever I wanted as far as advertising and selling on the internet. That would make it SO much easier!! But I guess that’s the point eh? 😉

Yes it has been a huge wakeup call for me. I have sold on ebay for years and really thought they would protect their sellers. To me if there were no ebay sellers there would be no ebay right? So why would ebay not protect it’s sellers and give them a heads up?
According to one director of Mary Kay I spoke to this past year Mary Kay did try to stop ebay from selling Mary Kay, but ebay refused. Therefore you wonder does Mary Kay really have a case?

Today for example there are approx. 29,000 Mary Kay auctions. On the same point there are 114,000 Nike auctions. Why is Nike not suing and ending their listings.

It all goes back to Mary Kay is not interested in selling Mary Kay products to the “public”.

Mary Kay is loosing consultants and opportunites to sign up consultants. There is where they make their profit. Sell a $18.00 tube of cleanser one at a time or sell $7200 in one whack. Makes sense to me. GRRRRRR

Just this week ebay started adding this clause at the “very bottom of every listing”Seller assumes all responsibility for listing this item.” I bet 9 out of 10 people never even see it on there. Once again where is ebay’s loyalty to it’s sellers. That clause is their out of a lawsuit. Did they send warnings or letters to sellers letting them know of this. Not to my knowledge and I’m a power seller with a store.

Mary Kay’s business spreads because of the personal contact of the consultants. My friends & family only tried/bought it because I was selling it. I sold a few products to my cousin, but when her DIL became a consultant she bought way more. Then her daughter started using MK – etc etc etc. The consultant can also ‘suggest’ other MK products to use and more products are sold.
It’s a good system unless a customer (who only buys 1 or 2 items) sees that she can buy on ebay for less $ – she stops buying from the Consultant – consultant sells even less – MK loses more consultants.
Why would MK warn the liquidators? There would only be more around the corner. This makes it newsworthy.

My theory is that MK doesn’t like the liquidators because many recruiters use the “personal use” lure to get the contract signed. Then the director will work on the recruit to get them to order big. I was recruited that way, although my director wasn’t pushy about inventory.

I was VERY annoyed however, to find out about the $200w/s minimum for the 50% discount the first time I logged onto InTouch as a consultant to order my half price microderm set. Had I known about that before I signed on the dotted line, I wouldn’t have joined!

Then I ordered the minimum and figured that if I had it I may as well try to sell it. Lucky for me, I had NO warm market, so I got out with minimal debt.

But for others, this is how the vicious cycle starts, and MK is raking in the proceeds!

I am a MK consultant. Notice I said consultant-not a director? I personally love the products! And I have customers who have achieved great results! I don’t lie to people-and I believe in the product. If I didn’t, I wouldn’t sell it.
Mary Kay Ash set up this company to not only sell her products but to assist women everywhere with a business opportunity to do from home!
When you sign up you sign a contract saying you will not sell on places like e-bay, yard sales, etc..
First, MK has a reputation to keep. Second, Mary Kay’s business opportunity is hurt when sold on e-bay. That is the whole point of the sales force! Sell it online through e-bay-Mary Kay makes less, consultant makes less, the whole team goes down the drain. Nike and other companies that may sell on e-bay do not have consultants running their business. Nike is not a business opportunity for women!! If you don’t want to be in sales, don’t sign up! It is that simple- It is not a MLM.
I know of wonderful women in Mary Kay–and women that are Nationals too! This is a legit business and has been for 45 years. If it is so bad, why has it succeeded for so long? There are a lot of satisfied customers throughout the years.
Bottom line is Mary Kay looks after their consultants. The business is about providing quality skin products and a good business opportunity for women.

Have you ever told anyone that Mary Kay is the Best Selling Brand? That’s a lie. Have you ever told anyone that you “own your own business” with Mary Kay? That’s a lie.

When you sign up you sign a contract saying you will not sell on places like e-bay, yard sales, etc..

If I remember correctly, there is NO mention of ebay, auctions sites or yard sales in the agreement you sign. All those “rules” come later, in a big handbook they call Legalease.

Nike and other companies that may sell on e-bay do not have consultants running their business

No, but there are plenty of people who have purchased Nike products and are selling them on eBay and that’s perfectly fine.
Once you buy a product it’s YOURS. How can MK justify suing people who are selling MK products on eBay, especially if they aren’t consultants? Once those products have been sold, those products are NOT MK’s anymore.

Wouldn’t it be fun if Nike came to your house and took all your merchandise back because they said they still wanted to control who sold their stuff and just because you bought it, it isn’t yours?

It is not a MLM.

Sorry to burst your myopic bubble, but MARY KAY IS AN MLM. Period.

This is a legit business and has been for 45 years. If it is so bad, why has it succeeded for so long?

Because there is a least one sucker born every day. The population increases. Gotta have more people to keep your company going. And then expand into third-world companies.

First, MK has a reputation to keep. Second, Mary Kay’s business opportunity is hurt when sold on e-bay. That is the whole point of the sales force! Sell it online through e-bay-Mary Kay makes less, consultant makes less, the whole team goes down the drain.

pinkconsultant, thanks for posting.

First, let me tell you that Mary Kay IS an MLM, multi-level marketing. Each level you achieve in MK results in a higher commission, therefore to make the MOST money and to keep your position you must constantly recruit others and convince them to move up through the ranks…multi-level marketing, plain and simple.

Second, MK always makes money, they sold every bit of the product sold anywhere the FIRST time, therefore they are making money!

Most of the people selling MK on e-Bay are former consultants or they are liquidators who earn their money buying from former consultants who couldn’t sell the product even at wholesale and are willing to take less just to get something out of the product sitting on their shelves.

Bottom line is Mary Kay looks after their consultants.

I respectfully disagree with you! If MK is so concerned with their consultants, why do they control EVERY avenue of income? Why is their selling contract so restrictive right down to how and where you can advertise, sell and promote your business? MK has been successful because they have made a business out of putting women in business for them (MK). MK makes more money from this opportunity than anyone and believe me it was designed exactly that way.

Ask yourself why so many women stop selling MK? Could it be because they can’t sell it and make a profit?

Add up all your expenses and subtract that from your total sales. divide that by the number of hours you work and you will see exactly how little you are making.

Take a hard look at your income tax return, schedule C and look at those tax deductions, they are real expenses, real money taken from your income, and they don’t pay your bills or feed your family.

There are products on the market that are just as good and even better, at a lower price, because there is NO middle man.

Actually, yes, they are once again sending out legal papers from Kelly & Hart. I got a letter first telling me they were petitioning the court for the right to depose me. Then they sent me a letter saying the court agreed and I needed to respond by Oct. 1, 2012 or they would assume I didn’t intend to comply and they could take whatever action needed to force my compliance and I would be responsible for their legal fees. They also, in their first letter, asked for all of my computer discs, etc. to show to whom and from whom I buy from. I don’t think they have much of a leg to stand on; but from what I’ve read of earlier cases, sounds like they get the eBay seller to agree to not sell anymore. I don’t know if they scare them into the agreement, or if the courts actually make them stop selling. I guess I will find out! I think it’s ridiculous. I love the product, hate the company. As others have said, if I don’t have an agreement with MK, if I buy product online and now own it, I should have the right to resell it and identify it by it’s brand name. Also, MK has already made THEIR money. They are the best selling company because they don’t sell to the ultimate consumer–they sell to consultants–and those poor women (I used to be one) have all of these products sitting on shelves in their homes because they are encouraged to buy thousands of dollars of inventory, and it doesn’t all sell. Then MK changes formulas and packaging all the time so the product they have is outdated before it’s expired!! No, I don’t believe MK cares much about it’s consultants OR its customers!! Another thing, there are those who will buy from eBay and those who would only buy from a personal consultant. I would think a multi-million dollar company would figure there was room for both types of buyers. Again, why should they care? They ALREADY GOT THEIR MONEY!!!! Saying they are trying to stop eBay sales to help out their active consultants may or may not be true. Again, there are both types of customers. If they really cared about their consultants, they wouldn’t push the MLM model and push consultants into buying more inventory than they can afford!!! MK products are great–they are all I use. But they are shooting themselves in the foot with the negative press they will continue to get from these hateful lawsuits!

I think it’s weird. Mary Kay basically had NO real “evidence” against any of the people they’re suing (me being one of them)… BUT, these depositions GIVE them all they may need to sue… so WHY on earth are the lawyers for these people advising them of their 5their 5th amendment rights against self incrimination? Yes, it applies to ALL court proceedings civil as well as criminal….
Asking for computers, electronic files, sales records???? completely AGAINST our Constitution… I can’t WAIT for my deposition… Mary Kay is traveling to ME… not vice versa and the trip will be a very pointless one as I will be exercising my 5th Amendment rights for each and every question…
I said this on another site and I’ll say it here… Mary Kay has an UNLOADED gun right now… WE have the bullets…. through these depos they are GETTING those bullets and building cases and shooting you with your OWN bullet… Anyone being sued orPetitioned by mary kay needs to truly think about this and discuss these RIGHTS with their attorneys. I am honestly amazed at how many are allowing MK do whatever they want, whenever they want, WHEREEVER they want…. Not this one…. they’re going to have to JUMP through a lot of hoops and when they do, they’re STILL NOT getting a word or document from me…

And yes, of course these people can assert their 5th amendment rights, but the thing is that many are being served with requests for evidence and if they don’t produce, MK threatens to file formal suit against them. That scares a lot of people into compliance because they don’t have the money to fight big MK Inc.

The Fifth Amendment ‘can be asserted in any proceeding, civil or criminal, administrative or judicial, investigatory or adjudicatory; and it protects against any disclosures which the witness reasonably believes could be used in a criminal prosecution or could lead to other evidence that might be so used.’ Kastigar v. U.S., 406 U.S. 441, 44-45 (’72). A reasonable belief that information concerning income or assets might be used to establish criminal failure to file a tax return can support a claim of Fifth Amendment privilege. See U.S. v. Rendahl, 746 F.2d 553, 55-56 (9th Cir.’84).

Okay people lets get real here, other than the fact that yes if everyone started selling on ebay and in other avenues like that it would hurt consultants how about the fact that its sensitive product. Did anyone ever think about that? Makeup and skin care of any kind has an expiration date and can also go bad if not stored properly. I personally don’t want to buy cleanser from someone on ebay or from a garage sale because I don’t know how long a person had it, where they stored it, (was it in there hot car for 3 days)? Lets get real here its something you are putting on your face, on your body these are places you don’t want to just put anything on from anywhere. Get over yourselves and get a life and stop hating on a great company, just because you could not handle the work it took to be successful!

Most makeup and skin care products DO NOT have expiration dates. They are shelf stable when unopened and stored under the right conditions.

As for your not wanting to buy off eBay and garage sales because you don’t know how long a person had the product or how it was stored…please tell me how you know these things when you buy from a consultant? There’s no guarantee they are storing it right or haven’t had it for years either. They’re no different than those selling on eBay. In fact, most of the people selling on eBay are or were consultants. There’s no mystery sellers on eBay who someone get a hold of Mary Kay products to sell 😉

Get over yourselves and get a life and stop hating on a great company, just because you could not handle the work it took to be successful!

I’d say you’re the one who needs to get real.

As for successful…how much MK have you sold this week? How’s that recruiting going? Many of the women here sold plenty, worked their butts off and WERE successful. They just finally opened their eyes and saw the pink dog and pony show for what it was.

justos, what about the cosmetics sittng in an unairconditioned or unheated UPS truck for days? MK doesn’t take any precautions to ship it under controlled conditions. Everything you buy in a dept store or discount store also is shipped via truck, hot, cold, moderate, freezing, no matter what the temperature. And LJ is right, most consumers don’t know the date coding of products whether it be MK, other skin care and cosmetics or even the food you eat. Most of those production date and expiration date codes are not decipherable if you don’t have a key the the company’s coding!

As far as your last statement, you know nothing about any of us. We probably worked our business harder than you are. How many hours do you put in each day? What kind of income after expenses are deducted are you making?

If you are taking MK’s word about us amd judging us based on what they say, you are seriously in the fog. If you are figuring your income the way they calculate it in your unit meetings, you have no clue about how to determine your profit level and you need to consult a good acountant to open your eyes. I wish you luck, just make sure you are fully informed and knowledgeable about everything related to MK. I invite you to read more from those who have spent years trying to make MK work for them and their families.